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Podcast: Read & Repeat
Episode: EP23 The Innovator's Dilemma by Clayton Christensen
Description: The Innovator’s Dilemma is a powerful business framework, characterizing when incumbent businesses ignore disruptive technologies for 3 main reasons: listening too closely to their mainstream market customers, targeting higher margin products which thus leads to higher cost structures, and ignoring small new markets due to large growth forecasts. Managers are usually rational in their decision-making, but don’t have incentives in place to pursue the lower-margin and smaller disruptive markets. Using examples across the disk drive, steel, discount retailing, and accounting industries, we explore times when large incumbents suffered at the hands of the innovator's dilemma. We'll close off with...